EMI is on song thanks to Kylie

Thursday 18 July 2002 23:00 BST

MUSIC giant EMI today moved to reassure investors it was on track to record a stronger performance. Addressing shareholders at its annual general meeting in London, the company said it expected to meet revenue targets and achieve planned cost savings.

It also forecast a 'substantial' improvement in operating performance for the half and full year.

The pledge comes after a rough period for EMI, which earlier this year blamed a stagnant record buying market for a sharp fall in final profits.

But today group chairman Eric Nicoli said first-quarter trading in the recorded music and music publishing divisions had been in line with forecasts.

A number of albums had performed well, such as Kylie Minogue's Fever - 700,000 copies were sold over the three months to bring the total up to 4.4 million.

EMI is currently overhauling its recorded music division under the leadership of new boss Alain Levy, formerly at Polygram.

Since joining, he has unveiled plans to cut about 1,800 jobs or one fifth of the division's workforce and reduce the number of artists to 1,200.

Mr Levy replaced Ken Berry, who left last October by 'mutual agreement'. Credited with signing The Spice Girls, Mr Berry received a £6m pay-off which EMI said reflected contractual entitlements, including future bonuses.

In response to questions about whether EMI would consider a tie-up with an industry rival, Nicoli said: 'We're even more convinced now that EMI is best-placed as a stand-alone company.'